Myth: “After obtaining a Reverse Mortgage, the Lender or the Government owns your home.”
Reality: False. You own your home. The lender simply has a deed of trust secured on your home. All your home equity and future appreciation belongs to you. You have no monthly required mortgage payments but you are responsible for paying real estate taxes and homeowners’ insurance.
Myth: “A Reverse Mortgage is only for people in financial trouble.”
Reality: False. A Reverse Mortgage can be a smart retirement tool – useful for balancing monthly cashflow, maximizing social security benefits, supplementing income, downsizing, aging-in-place or legacy planning. Obtaining a Reverse Mortgage is often best when it’s a discretionary decision and not in the midst of a health or financial crisis.
Myth: “You can owe more than your home is worth.”
Reality: False. You can never own more than your home is worth. A Reverse Mortgage is a NonRecourse loan. That means if the balance exceeds the home’s value, the insurance covers the gap – not your heirs or your estate. Any remaining home equity stays with your family and your estate.
Myth: “If one of the homeowners becomes ill and needs to move to a care facility, the Reverse Mortgage comes due.”
Reality: False. With a Reverse Mortgage, your loan isn’t due as long as one homeowner lives in the home for a minimum of one day per year. This provides a significant amount of latitude in the event a spouse needs care outside of the home on a temporary or permanent basis. You can stay in your home as long as you wish or as long as you’re able and keep your Reverse Mortgage.
Myth: “Social Security and Medicare will be affected by a Reverse Mortgage.”
Reality: False. Government entitlement programs such as Social Security and Medicare are typically not affected by a Reverse Mortgage. However, depending on your situation your Medicaid benefits may be affected.
George H. Omilan
President-CEO - NMLS# 873983
Jefferson Mortgage Group LLC - Mortgage Specialists
Programs: Traditional QM (Fannie Mae, Freddie Mac), government insured HECM Reverse Mortgages, and Non Traditional Non-QM Mortgages commonly referred to as Specialized Forward Mortgages including “Alt-A Investor loans” and DSCR (Debt Service Coverage Ratio) loans up to 85% LTV, both Full doc and No Income-No Employment (No Doc) for the investor community. Our expanded niche products also focus on the more traditional FHA & VA with Lower Score and higher Debt-to-Income Options, Fixed & Variable Jumbo loans, and Private Label Reverse mortgages for higher priced homes. We are also highly focused on specialized loans for the Self-Employed borrowers with our Bank Statement & Asset Dissipation Programs. We are committed to offering a full range of “Non-QM Loans” for expanded qualification, where the banks and large-scale lenders dare to go.